Starting the New Year on a steady note, the rupee recovered from initial losses against the US dollar to close at 66.14 on fresh selling of the American currency by banks and exporters on fresh foreign capital inflows into equity market.
The rupee resumed lower at 66.20 as against overnight closing level of 66.15 at the Interbank Foreign Exchange (forex) market and dropped further to 66.26 on initial dollar demand from banks and importers.
However, it recovered from initial losses to 66.13 before finishing at 66.14, showing a mere gain of one paise or 0.02%.
The rupee gained 25 paise, or 0.38%, in two days.
The domestic currency moved in a range of 66.13 and 66.26 during the day.
Globally, the US dollar ended higher against its major rivals yesterday amid lacklustre trade due to holiday season.
Foreign portfolio investors (FPIs) pumped in $166.53 million into equity market yesterday, as per Sebi data.
Meanwhile, the benchmark BSE Sensex moved up further by 43.36 points, or 0.17%, to end at 26,160.90.
Veracity Group CEO Pramit Brahmbhatt said, “The rupeeVeracity Group CEO Pramit Brahmbhatt said, “The rupee traded in thin range, taking cues from equity market, but eventually appreciated by one paisa to close at 66.14. The trading range for the Spot USD/INR pair is expected to be within 66 to 66.30.”
In forward market, premium for dollar fell further on sustained receivings from exporters.
The benchmark six-month premium payable in June eased to 202-204 paise from 204.25-206.25 paise previously and far forward December 2016 contract also moved down to 411-413 paise from 412-414 paise.
The RBI fixed the reference rate for the dollar at 66.1780 and for the euro at 71.8627.
In cross-currency trades, the rupee firmed up against the pound sterling to close at 97.54 from Thursday’s level of 98.04 and rose further against the euro to close at 71.81 as compared to 72.10 per euro.
While, it eased against the Japanese Yen to 54.98 from 54.96 previously.